Section 110: Postal ballot
This section is for allowing companies to use postal ballots to make decisions on certain items of business instead of holding a general meeting.
The section, clause by clause
What the section says
In plain terms
(1)Notwithstanding anything contained in this Act, a company—
A company must use a postal ballot for certain items of business specified by the Central Government, and may also use postal ballots for other items of business, except for ordinary business or business where directors or auditors have a right to be heard, in a manner that will be prescribed.
(1)(a)shall, in respect of such items of business as the Central Government may, by notification, declare to be transacted only by means of postal ballot; and
(1)(b)may, in respect of any item of business, other than ordinary business and any business in respect of which directors or auditors have a right to be heard at any meeting, transact by means of postal ballot, in such manner as may be prescribed, instead of transacting such business at a general meeting: 1[Provided that any item of business required to be transacted by means of postal ballot under clause (a), may be transacted at a general meeting by a company which is required to provide the facility to members to vote by electronic means under section 108, in the manner provided in that section.]
(2)If a resolution is assented to by the requisite majority of the shareholders by means of postal ballot, it shall be deemed to have been duly passed at a general meeting convened in that behalf.
If a majority of shareholders agree to a resolution by postal ballot, it is considered to have been passed at a general meeting.
The right-hand column is written from the section text, not quoted from it, and it has no legal force. Where the two differ, the left-hand column is the law.
Amendment notes
- 1. The Proviso ins. by Act 1 of 2018, s. 29 (w.e.f. 9-2-2018).
This section refers to
Referred to by
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Reproduced from the official India Code print for reference. Check the current text on India Code before you rely on it, and read the section alongside its Rules. Nothing here is legal advice.